Almost half of US millennials financially miserable
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The perception of millennials (45%) of their financial well-being is lower than the national average, a new report finds.
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45% of Millenials reported that their financial state would not allow them to have what they want in life
According to a report by Morning Consult's State of Consumer Banking & Payments, the American dream is the furthest away for millennials. Almost half (45%) of the millennial generation is very or entirely anxious about their financial status and believes it will stop them from having what they desire in life.
In comparison, only 35% of US adults felt the same way.
The report details that millennials are also more financially behind. 38% compared to all individuals polled indicated they are frequently or always financially behind. 46% said their money always or frequently governs their life, compared to 33% of all adults.
Obstacles such as two recessions before the age of 40 while dealing with sky-high living expenses and school debt have made amassing wealth more challenging.
According to Ernie Tedeschi, senior policy economist for the White House, explains that the experiences that have been "influenced by different economic conditions and realities, have had consequences for individual career prospects and affects their sense of dynamism."
The financial consequences of recessions can last for more than a decade. The eldest members of the group graduated into the Great Recession's damaged job market, putting them on a rough route to establishing a footing in their jobs and, consequently, accumulating wealth.
Hitting two recessions
A recession is a period of economic deterioration that occurs more frequently than expected. According to research, those who graduate in a recession could see stagnant financial development for up to 15 years.
Many Millenials are burdened with an average of $38,887 of student debt and over-paying for necessities like rent and healthcare fees.
By 2020, the generation experienced its second recession before hitting 40, while dealing with the financial effects of the last one.
Mark Muro, a senior scholar and policy director at the Brookings Institution, told Insider that the damage of Millenials is "life-long" due to the severity of the recession.
The covid-19 pandemic, although shorter than the 2008 financial crisis, was not without consequences. A housing problem and job losses kept Millenials disadvantaged.
As of now, the Millenials of the 1980s are recovering from their financial problems the best with accumulating money and being the only age cohort with job levels comparable to pre-pandemic levels.
